World meat industry news

Manufacturers maintain higher prices for goods after the strengthening of the ruble to reduce risks. And some hold prices unreasonably in order to get additional profit. Viktor Evtukhov, Deputy Minister of Industry and Trade of the Russian Federation, spoke about this.

The ruble seriously strengthened against the dollar and the euro at the end of March 2022, and on April 1, the exchange rate rolled back to the values ​​that were observed before the start of the special operation in Ukraine and the unleashing of an economic war by Western countries.

A number of manufacturers claim they have not increased the selling price since the end of 2021, while stores are charging serious markups. Yevtukhov does not agree with this assessment of the situation - according to him, some manufacturers raised prices, while retailers tried to contain price increases.

“Prices always react very quickly to adverse factors, but they react more slowly to an improvement in the economic situation. After the exchange rate strengthens, prices do not immediately return to their previous values, this does not happen, ”added the deputy head of the Ministry of Industry and Trade.

According to him, there are different factors. Some manufacturers need to maintain sufficient working capital. In conditions of economic turbulence, they cannot be sure that there will be enough money to purchase raw materials; they need to receive materials and components for a new batch.

“And for some time they support increased prices in order to reduce risks,” Yevtukhov noted.

Not all manufacturers behave in good faith - some may raise prices for no reason other than their own benefit.

“In some cases, manufacturers do not want to miss out on additional profits, there were many such examples. The prices that have been raised are held unreasonably. We don't want to meddle with manual adjustment like an elephant in a china shop. But there are different methods of response: we help conscientious producers to optimize in the supply chain and find alternative suppliers. This is normal and efficient operation. Those who raise prices unreasonably are dealt with by the FAS and other bodies controlling the order,” the source explained.

The Ministry of Industry and Trade monitors a wide range of goods, including socially significant ones. And not only consumer ones - they are also engaged in metallurgy, building materials, mineral fertilizers.

“If there is a very tough situation associated with socially significant goods, we can talk about limiting margins. We work in market conditions: hope for the market, but be vigilant yourself, ”said Yevtukhov.

“There is a connection between exchange rate fluctuations and inflationary phenomena, but there is no direct relationship,” the source said.

In different industries, in different circumstances, price movements can be rigidly tied to the exchange rate or not depend on it at all. Evtukhov recalled that the president, the government of the Russian Federation, the Central Bank took a number of measures to strengthen the ruble.